Which of the following correctly describe an economy's potential output level?
a. The maximum output level that is sustainable given available resources, technology, institutional constraints, and production incentives.
b. The amount produced when there are surprises associated with the price level in an economy.
c. The amount produced when there are surprises associated with the unemployment level in an economy.
d. The maximum output level that is not sustainable given available resources, technology, institutional constraints, and production incentives.
a
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Answer the following statements true (T) or false (F)
1) Mexican importers are suppliers of pesos in the foreign exchange market. 2) When the dollar price of yen rises, the dollar appreciates in value relative to the yen. 3) Import quotas are taxes or duties on imported products. 4) Barriers to free trade impair efficiency in the international allocation of resources. 5) The most-favored-nation clause in reciprocal trade agreements means that any tariff reductions the United States negotiates with a specific nation will automatically apply to many other nations.
Fixed costs faced by farmers typically include the following, except:
A. Family labor B. Fertilizer C. Property taxes D. Interest and rent payments